Gyroscope Therapeutics Holdings PLC has pulled its planned initial public offer (IPO) in New York, citing unfavourable market conditions.
Earlier this week the clinical-stage gene therapy company had submitted an indicative pricing range for the Wall Street IPO, with the American Depositary Shares set to be placed with investors at between US$20 and US$22 apiece.
With a proposed 6.75mln ADSs to be floated this would have resulted in gross proceeds to Gyroscope of roughly US$142mln.
But on Friday, chief executive Khurem Farooq said in a statement: “In light of market conditions, we have decided to postpone our planned initial public offering.
“Based on the positive feedback we have received from institutional investors on the strength of our science and investigational gene therapies, we believe it’s in the best interest of our existing shareholders and employees to execute our IPO in more favorable market conditions.”
He said the company would continue to advance the clinical program for its investigational gene therapy focused on age-related macular degeneration, GT005, as well as its earlier-stage pipeline.
The news is also a blow to FTSE 250-listed Syncona Limited (LON:SYNC), which in a March financing round increased its stake to 54%, with the holding value written up at the time to £150.6mln.
Broker Peel Hunt did not feel it would dent Syncona, noting that Gyroscope's announcements on its IPO “have not really driven any change in Syncona's share price over the last month.”
The analysts added: “We remain supporters of Syncona’s portfolio and like the science (and particularly the platform technology) for Gyroscope’s ophthalmic surgery.”